Fourth Avenue site sold for $533m

Allgreen Properties came in top bid for a land sales at fourth avenue, Bukit Timah enclave in a matter of five days with its successful bid as high as $1,540 psf ppr or $553m designed for the area of Fourth Avenue.

As the DBS Equity Research revealed, the asking price is 21 % down for what is being paid for Royalville collective sale, which is just a step away, specifically, lesser than 0.5 km away.

The developer responded an assertive bid to Royalville at $1,960 psf ppr, that only provokes more expectations from numerous land offers over this area. Thus it resulted in fewer bidders compared to the previous biddings.

Derek Tan, the competent DBS analyst told, “However, seven bidders of the development site are still honourably provided that Royalville area price hindered a number of developers from getting in.”

Wakefield & Cushman also told that highest bidder is considered bullish or upbeat!

Christine Li, the Director to Cushman and Wakefield Research stated: “The recent real estate property development needs to sell more or less $2,250 psf, presuming developers return level is 10 percent of the total development value.”

Even though the majority of the projects in the area are on freehold status, the position of Fourth Avenue area is a good factor to counterbalance its leasehold status, Li reiterated.

The area location is just right after the MRT Station of Sixth Avenue and adjacent to the major schools around the area such as Hwa Chong Junior College, Nanyang Primary School and Nanyang Primary School and Raffles Girl’s Primary School.

DBS also reported that Bukit Sembawang finally submitted after its decade of being silent. It was only $10m, next to the figure of Allgreen Properties was its bid price. The 14 % was considered the big spread.

The next in line group of land tenders closed last 30th of January 2018, which covered the Handy Road, Sumang Walk, Chong Kuo Road land areas or sites.